Building Hazards You’re Probably Ignoring

Building insurance is nothing new to contractors. No matter whether you’re a general contractor, framer, roofer or electrician you’ve got your business covered, right? If your client or a third party lays a claim for bodily injury, or a lawsuit for property damage to a neighbor’s paving or vehicle, your Contractors Liability has your back.

Every contractor has building insurance. Well, no …

It would be stupid not to have coverage for your business. The obvious reason is because the financial losses arising from claims could bankrupt a construction business. This is true for any size business in this industry. The danger is there whether you are a small, medium or large concern. The second reason for investing in building insurance coverage is simply because it is mandated by law across the country.

Despite these reasons, there are contractors who do not believe in the power of insurance to protect your business from unforeseen incidents that can cause considerable financial loss. For them, it is a grudge purchase. They think is is more expensive than it is worth. (Which is a pity because you can get cheap building insurance to cover all of your business needs. You just need to know where to look.)

Get with the program

Some savvy contractors have added another policy to their insurance program. Liability Insurance covers third party claims. Workers Compensation covers bodily injury to employees. So, where’s the gap?

Did you know that you can get coverage to protect a specific project? Here are some of the scenarios that your Contractors Liability Insurance does not cover, but Builder’s Risk can:

1. Financial loss as a result of damage to property under construction, whether it is a new building, a renovation or remodeling project. You face additional danger when it comes to the financial implications of damage to a building being renovated. Your building insurance should provide coverage for both the existing structures and the new construction. This benefit is termed Property Replacement.

2. You can be reimbursed for a percentage of profit earned as of the date of the loss. Remember that a Builder’s Risk policy covers a specific project, so if something goes horribly wrong you can be covered.

So, what else is there? 

With a building insurance program that includes General Liability coverage, Workers Compensation and Builder’s Risk Insurance, there are still some safety hazards you may not have considered. If any of the following happen in the course of your work, you can be held liable:

• Negligence in providing professional services
• Incorrect  work
• Oversights or errors

Even if it is an honest mistake, you can still be found liable. Luckily Errors and Omissions Insurance covers attorney fees, judgements, settlements and court costs up to the limits of the policy. It protects you, as a business owner, as well as employees or contractors working on behalf of your company.

Better building insurance coverage

So there you have it, a quick look at some hazards you could be ignoring because you thought they couldn’t be covered. To find out how to get the additional coverage you need, speak with our consultants at Builder’s Risk insurance company. We can help. Call 877 960 0221